You're watching...
Author Carol Roth discusses how the rising costs of gas are impacting the economy.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
A week the rising cost of gasoline will have a major impact -- America's businesses former investment banker Carol -- -- in Chicago are count.
You're in Chicago Illinois.
I believe that home prices there are all very very high and well over four dollars a gallon so I have to ask -- But -- -- it -- business obviously hello it's business but in the place like Chicago is the small business kill -- Well it -- let's think bears -- at any time that you have people spending money.
I'm gas they're not going to their businesses.
And I think that in a time like today.
We're typically people are going on vacations now -- -- not -- that.
They're not going -- restaurant they're not going to retail so of course that's gonna have an impact them business and I don't care here in Chicago vineyard any worker here and I.
I just wonder if we haven't got used to it though.
I mean the new normal for gasoline is 35316.
Nationwide and would -- used to it do we really cut back.
A do we actually cut back -- we see with I 360 of this of the -- doing.
I think that right now the consumer cannot catch a break.
It's like having a sad sick puppy in kicking it when it's down there hasn't been any good news with any sort of permanent out -- so it's not just.
The one time of -- what we expect to have high gas prices.
Is the fact that this is happening on top of bad news and bad news and we talked about this before it causes a lack of consumer confidence.
And some uncertainty -- confidence is a self fulfilling prophecy when people aren't feeling confident.
They're not out spending in the economy and that's going to continue to impact business says.
Not just today but to well into the fall.
See the economy growing at one point 5% -- and you -- that's a very very slow rate of growth.
Bearing in mind regulation.
High gas prices the impending tax in the get -- the whatever you wanna call it -- Can you see any way that we could get a much better growth rate than -- than one half percent in the immediate future and what what what pushes into -- -- growth -- I think -- I think that right now it's going to be very challenging and one of the things that I'm very concerned about particularly with bid gas price spike.
It is very different than previous ones this is something that's not to manager event as much as it is supply driven also regulations prevent the fact that we've got so much of the corn production having to go to at an all.
And the drought on top of that means that the gas prices are just the first domino that's going to fall in terms of inflation and I'm very concerned that this is going to affect food -- -- affect other consumer Staples so I see more bad news coming out when we head into September and October so when you say that one point 5% rate I really hope.
That that even -- the rate I am not sure what we can do right now to juice the economy other than perhaps a change of leadership in Washington.
You got -- The right -- the very very -- she tells us of -- interest you know -- that was very interesting stuff we appreciate you joining us today from high gas prices Chicago.
Thank you can.
Always there.
